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Banker indicted on larceny charges

By Katie Lannan, klannan@lowellsun.com

Updated:
06/25/2013 06:35:28 AM EDT

WOBURN -- A Wilmington woman accused of stealing more than $2.1 million by forging signatures on withdrawal slips and persuading friends and relatives to invest in fake accounts was indicted by a grand jury Monday on 31 counts of larceny.

Attorney General Martha Coakley alleges that Elaina Patterson, 53, used her position as a banker to garner trust from friends and family, then pushed fake investment opportunities that promised high interest rates.

"Once this scheme began to unravel, we allege that she began to steal from customers in order to fund withdrawals from investors and cover her illegal activity," Coakley said in a statement.

Authorities believe Patterson made around $6 million in fraudulent transactions between July 1999 and September 2011, but paid back nearly $3.8 million to customers.

Patterson allegedly convinced 15 friends and family members to invest $4.5 million by claiming her position at the bank allowed her to set up for them exclusive, high-interest accounts normally reserved for high-level investors. Authorities say she then issued fake receipts and banking forms to make the accounts look legitimate.

According to the attorney general's office, Patterson allegedly started taking money from the accounts of customers, many of whom were elderly, in 2009. She is alleged to have forged signatures on withdrawal slips, stealing nearly $1.5 million from 16 customers.

Patterson will be arraigned in Middlesex Superior Court on 16 charges of larceny over $250 and 15 charges of larceny over $250 from a person over age 60.

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